Adobe CEO Shantanu Narayen to Step Down After Successor Is Named

Adobe said Chief Executive Officer Shantanu Narayen will step down after a successor is appointed, while continuing as chair of the company. The announcement was made along with the company’s quarterly results. Adobe shares fell about 7 percent in extended trading after the news.

Narayen joined Adobe in 1988 as vice president and general manager and became CEO in 2007. During his tenure, the company shifted its business model from traditional software licenses to subscription based services through its Creative Cloud platform. Adobe is now expanding its offerings in generative artificial intelligence.

Narayen also led an effort to acquire design software company Figma. However, regulators opposed the deal and both companies later terminated the agreement, with Adobe paying Figma a 1 billion dollar breakup fee.

“On behalf of the Board, I want to recognize Shantanu’s contributions as CEO and architect of Adobe’s transformation over the past 18 years, and for positioning Adobe for success in the AI-driven era,” said Frank Calderoni, Adobe’s lead independent director. “As we take the next step in succession planning, we are focused on selecting the right leader for this next exciting chapter of the company’s growth and are grateful for Shantanu’s continued leadership as CEO to ensure a smooth transition.”

Narayen, 62, also serves as lead independent director at Pfizer. According to company filings, he received 51 million dollars in total compensation for the 2025 fiscal year and owns about 118 million dollars in Adobe shares.

In a memo to employees, Narayen said he will remain on the board to support the next CEO.

“What attracted me to Adobe 28 years ago was our leadership in creating new market categories, world-class products, a relentless desire to innovate in every functional area of the company and the people I met during the interview process,” Narayen wrote. “We have continued to create new markets, deliver world-class products, drive innovation in everything we do and attract and retain the best and brightest employees.”

During Narayen’s leadership, Adobe’s stock increased more than sixfold, while the S&P 500 rose about 350 percent during the same period.

Reacting to the announcement, Dylan Field, co founder and CEO of Figma, wrote on X, “Shantanu is a leader I’ve come to know and respect deeply. He’s thoughtful, kind and relentless in pursuit of Adobe’s vision. Grateful for the time we spent together and wishing him all the best in the years ahead!”

Satya Nadella, CEO of Microsoft, also congratulated Narayen.

“You’ve built one of the most important software companies in the world, and expanded what’s possible for creators, entrepreneurs, and brands everywhere,” Nadella wrote on X. “What has always stood out to me is the empathy you’ve brought to the creative process and the example you’ve set as a leader.”

Alongside the leadership update, Adobe reported strong quarterly results. The company posted adjusted earnings per share of 6.06 dollars compared with expectations of 5.87 dollars. Revenue came in at 6.40 billion dollars, above the expected 6.28 billion dollars.

Revenue increased about 12 percent year over year in the fiscal first quarter that ended on February 27. Net income rose to 1.89 billion dollars, or 4.60 dollars per share, from 1.81 billion dollars, or 4.14 dollars per share, a year earlier.

Adobe said annualized revenue from its AI first products more than tripled.

“That should be our next billion dollar business,” Narayen said on a conference call with analysts.

For the fiscal second quarter, Adobe expects adjusted earnings per share between 5.80 dollars and 5.85 dollars on revenue of 6.43 billion dollars to 6.48 billion dollars.

The company said it had about 850 million monthly users across Acrobat, Creative Cloud, Express and Firefly during the quarter, an increase of 17 percent year over year.

Adobe also announced that Acrobat, Express and Photoshop applications are now available for ChatGPT and confirmed an expanded partnership with advertising company WPP.

The company said the search for a new CEO could take several months.